Chandigarh: The Punjab cabinet on Saturday approved a special incentive package for new mega and ultra mega projects to attract investments in the state.

The project with a fixed capital investment of Rs 1,500 to Rs 2,500 crore with a minimum contract demand of 20 MVA (mega volt-ampere) will be treated as megaprojects and projects with a fixed capital investment of above Rs 2,500 crore and minimum contract demand of 30 MVA will be treated as ultra megaprojects, according to an official release.

Under the special package, the projects will be provided special power tariff for four years to mega projects and five years to new ultra mega projects from the date of release of permanent power connection.

Similarly, the incentive of net goods and services tax reimbursement will be available at the rate of 100 per cent of the net GST with a cap of 200 per cent of FCI (fixed capital investment) to be availed over a maximum period of 17 years for mega-projects and 20 years for ultra mega projects.

This special package of incentives will be available to only those units which will file their common application form (CAF) before October 17, 2022, and shall attain commercial production within 3 years (mega-projects) and 4 years (ultra mega projects) from the date of submission of CAF.

With the special package of incentives, the state would be in a better position to attract mega and ultra mega-projects, which would be helpful in creating an industrial ecosystem, thereby promoting the development of many ancillary industries.

The decision was taken in the cabinet meeting chaired by Chief Minister Charanjit Singh Channi.

In another decision, the cabinet also gave a nod to waive pending arrears of electricity bills of all ‘Gaushalas’ in Punjab.

In a bid to ensure precise planning, designing, estimation and transparent implementation of public works, the cabinet approved the setting up of design, quality control monitoring and evaluation wing in the soil and water conservation department.

Keeping in view the possibility of the third wave of COVID-19, the cabinet also decided to retain and extend the services of manpower already engaged on an outsourcing basis in government medical colleges of Patiala and Amritsar till March 31, 2022.

However, this move would help the state government to tackle an emergent situation, arising out of any eventuality and lessen the burden on the healthcare facilities.

Also read: India, Pakistan exchange list of nuclear installations

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